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Question
State true or false with reason.
Once the application money is received, directors can immediately proceed for allotment of shares.
Options
True
False
MCQ
True or False
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Solution
This statement is False.
Directors can proceed for allotment of shares only after receiving minimum subscription amount of the issued amount by cheque or other instrument complying all legal requirements.
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Chapter 8: Company Accounts - Issue of Shares - Exercise 8.1 (Objective Questions) [Page 339]
